Gold settles lower as safe-haven demand eases

Gold bars

Gold prices closed lower on Tuesday as investor demand for the metal as a safe haven eased amid growing optimism over trade deals between the United States and several other countries.

Gold futures fell 0.77%, or $25.9, to settle at $3,316.9 per ounce, after trading flat earlier in the session.

The yellow metal came under pressure as the yield on the US 10-year Treasury rose 2.2 basis points to 4.417% as of 9:58 p.m. Mecca time.

The decline followed a move by the US administration to send formal letters to several countries notifying them of upcoming tariffs, while also extending the deadline for implementation and trade negotiations to Aug. 1.

Peter Grant, Vice President at Zaner Metals, told Reuters there is some optimism around trade agreements despite the Trump administration’s increased pressure on other countries, which is encouraging investors to take on more risk.